Performance of the Service Sector in the Republic of Korea: An Empirical Investigation

Donghyun Park and Kwanho Shin

No 324, ADB Economics Working Paper Series from Asian Development Bank

Abstract: There is a widespread perception that the Republic of Korea’s service sector lags behind its dynamic world-class manufacturing sector. We empirically analyze the past performance of the Republic of Korea’s service sector in order to assess its prospects as an engine of growth. Our analysis resoundingly confirms the conventional wisdom of an underperforming service sector. In light of the Republic of Korea’s high income and development level, the poor performance of modern services is of particular concern. We identify a number of factors underlying the poor performance, and set forth policy recommendations for addressing them. Overall, the Republic of Korea faces a challenging but navigable road ahead in developing a high value-added service sector.

Keywords: Services; structural change; growth; productivity; Republic of Korea (search for similar items in EconPapers)
JEL-codes: O14 O40 O47 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2012-12-31
Note: http://www.adb.org/sites/default/files/pub/2012/economics-wp324.pdf
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0324

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